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3. TRUE/FALSE When selecting a medical plan, the premium is less if the plan has a low deductible and a low maximum out-of-pocket. True (1) False

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3. TRUE/FALSE
When selecting a medical plan, the premium is less if the plan has a low deductible and a low maximum out-of-pocket.
True
(1) False

3. TRUE/FALSE When selecting a medical plan, the premium is less if the plan has a low deductible and a low maximum out-of-pocket. True (1) False

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UlyssesElite · Tutor for 8 years

Answer

### False

Explain

## Step1: Define the Terms<br />### A premium is the amount paid periodically to an insurance company for a health plan. A deductible is the amount paid out-of-pocket by the policyholder before the insurance company starts covering expenses. The maximum out-of-pocket is the most a policyholder will have to pay for covered services in a plan year.<br />## Step2: Analyze the Relationship<br />### Typically, insurance plans with lower deductibles and lower maximum out-of-pocket costs have higher premiums. This is because the insurance company assumes more risk and thus charges more to cover potential expenses.<br />## Step3: Conclusion<br />### Given the typical structure of insurance plans, the statement that the premium is less if the plan has a low deductible and a low maximum out-of-pocket is false.
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